Roundtable on Sustainable Palm Oil Certification R S P O

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PT MUTUAGUNG LESTARI

ASSESSMENT REPORT

Roundtable on Sustainable Palm Oil Certification R S P O

[] Surveillance Name of Management

Organisation : Manggala Palm Oil Mill – PT Tunggal Mitra Plantation subsidiary of SIME DARBY Plantation Bhd

Plantation Name : PT Tunggal Mitra Plantation (Manggala 1 Estate, Manggala 2 Estate, and Manggala 3 Estate)

Location : Village of Pujud, Sub District of Pujud, District of Rokan Hilir, Province of Riau, Indonesia

Certificate Code : MUTU-RSPO/002

Date of Certificate Issue : 25 November 2015 Date of License Issue : 25 November 2018 Date of Certificate Expiry : 24 November 2020 Date of License Expiry : 24 November 2019

Assessment Assessment

Date PT. Mutuagung Lestari

Auditor Reviewed

by Approved

by

ASA-1.3 17 to 21 September 2018

M. Rinaldi (Lead Auditor), Rizliani Aprianita, Dwi Haryati, Haikal

Ramadhan Kharismansyah Ardiansyah Octo HPN

Nainggolan

Assessment Approved by MUTUAGUNG LESTARI on:

ASA-1.3 30 November 2018

PT Mutuagung Lestari • Raya Bogor Km 33,5 Number 19 • Cimanggis • Depok 16953 • Indonesia

Telephone (+62) (21) 8740202 • Fax (+62) (21) 87740745/6 • Email: agri@mutucertification.com • www.mutucertification.com MUTU Certification • Accredited by Accreditation Services International

on March 12^th, 2014 with registration number ASI-ACC-055

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PT MUTUAGUNG LESTARI

ASSESSMENT REPORT

RSPO – 4006a/1.0/26072018 Page i

Prepared by Mutuagung Lestari for Manggala POM – PT Tunggal Mitra Plantation subsidiary of Sime Darby Plantation Bhd

TABLE OF CONTENT FIGURE

Figure 1. Location Map of PT Tunggal Mitra Plantation 01

Figure 2. Operational Map of PT Tunggal Mitra Plantation 02

Abbreviations Used 03

1.0 SCOPE of the CERTIFICATION ASSESSMENT

1.1 Assessment Standard Used 05

1.2 Organisation Information 05

1.3 Type of Assessment 05

1.4 Location of Mill and Plantations 05

1.5 Description of Area Statement 06

1.6 Planting Year and Cycles 06

1.7 Description of Mill and Supply Base 07

1.8 Estimate Tonnage of Certified Product 08

1.9 Other Certifications 08

1.10 Time-Bound Plan 08

2.0 ASSESSMENT PROCESS

2.1 Assessment Team 18

2.2 Assessment Methodology, Assessment Process and Locations of Assessment 18

2.3 Stakeholder Consultation and Stakeholders Contacted 21

2.4 Determining Next Assessment 21

3.0 ASSESSMENT FINDINGS

3.1 Summary of Assessment Report of the RSPO Certification 22

3.2 Summary of Assessment Report of Supply Chain Requirement 54

3.3 Conformity Checklist of Certificate and Logo Use 67

3.4 Summary of RSPO Partial Certification 68

3.5 Identification of Findings, Corrective Actions, Observations, Opportunity for Improvement and

Noteworthy Positive Components 70

3.6 Summary of Arising Issues from Public, Management and Auditor Responses 90 4.0 CERTIFIED ORGANISATION’S ACKNOWLEDGEMENT OF INTERNAL RESPONSIBILITY

4.1 Formal Signing of Assessment Findings 93

APPENDICES

1. List of Stakeholders Contacted in the RSPO Certification Process 94

2. Assessment Program 96

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PT MUTUAGUNG LESTARI

RSPO ASSESSMENT REPORT

RSPO – 4006a/1.0/26072018 Page 1

Figure 1. Location Map of PT Tunggal Mitra Plantation

13,83

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PT. MUTUAGUNG LESTARI

RSPO ASSESSMENT REPORT

RSPO – 4006a/1.0/26072018 Page 2

Prepared by Mutuagung Lestari for Manggala POM – PT Tunggal Mitra Plantation subsidiary of Sime Darby Plantation Bhd Figure 2. Operational Map of PT Tunggal Mitra Plantation

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RSPO – 4006a/1.0/26072018 Page 3

Prepared by Mutuagung Lestari for Manggala POM – PT Tunggal Mitra Plantation subsidiary of Sime Darby Plantation Bhd AMDAL : Analisis Mengenai Dampak Lingkungan (Environment Impact Assassment)

ASA : Annual Surveillance Assassment

B3 : Bahan Berbahaya dan Beracun (hazardous and toxic materials) BAPP : Berita Acara Penyelesaian Pekerjaan / Work Settlement Minutes BHCV WG : Biodiversity & High Conservation Value Working Group

BOD : Biological Oxygen Demand

BOB : Barn on Box

BMS : Block Manuring System

BSS : Block Spraying System

BPJS : Badan Penyelenggara Jaminan Sosial (Social Security Agensy)

BPJS TK : BPJS Ketenagakerjaan

BPJS Kes : BPJS Kesehatan

BPN : Badan Pertanahan Nasional / National Land Agency

CH : Certificate Holder

CR : Collection Road

CPO : Crude Palm Oil

CSR : Corporate Social Responsibility

EFB : Empty Fruit Bunch

EIA : Environment Impact Assasment

ESH : Enviromental Safety and Health

FFA : Free Fatty Acid

FFB : Fresh Fruit Bunch

FPIC : Free, Prior, Informed and Consent

GCAD : Group Corporate Audit Department

GM : General Manager

GHG : Green House Gases

GIS : Geographic Information System

HCV : High Conservation Value

HGU : Hak Guna Usaha (Land Use Permit)

HIRAC : Hazard Identification Risk Assesament and Control

HPI : Head Plantation Indonesian

HPO : Head Plantation Operation

HR : Human Resources

IK : Instruksi Kerja (Work Instruction)

IPM : Integrated Pest Management

IUP : Izin usaha perkebunan (Plantation Business License)

KAN : Komite Akreditasi Nasional / National Acreditation Committee

Kasie : Kepala Seksi

KER : Kernel Extraction Rate (Rendemen Kernel)

LB3 : Limbah Bahan berbahaya dan beracun (hazardous and toxic materials)

LC : Land Clearing

LCC : Legume Cover Crop

LK3P : Lembar Kertas Kerja Kesimpulan Pemeriksaan (Working Conclusion Summary Sheet)

LSU : Leaf Sampling Unit

LTA : Lost Time Accident

LUCA : Land Use Change Analysis

MGE 1 : Manggala Estate 1

Abbreviations Used

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PT. MUTUAGUNG LESTARI

RSPO ASSESSMENT REPORT

RSPO – 4006a/1.0/26072018 Page 4

MGF : Manggala Factory

MKS-IKS : Minyak Kelapa Sawit – Inti Kelapa Sawit / Crude palm oil – Palm Kernel

MMCM : Monthly Management Committee Meeting

MSDS : Material Safety Data Sheet

MR : Main Road

MRC : Minamas Research Center

OER : Oil Extraction Rate

OHS : Occupational Health and Safety

P2K3 : Panitia Pembina Keselamatan dan Kesehatan Kerja (OHS Committee)

PK : Palm Kernel (Inti Sawit)

PKS : Pabrik Kelapa Sawit (Palm Oil Mill)

PMPB : Pedoman Managemen Perkebunan Berkelanjutan (sustainable management of plantation guidelines)

PSQM : Plantation Sustainability Quality Management

POME : Palm Oil Mill Effluent

PPE : Personal Protective Equipment

PSD : Plantation Services Department

PUK : Pimpinan Unit Kerja /Head of the Work Unit

RKL : Rencana kelola lingkungan (Environment Management Plan) RPL : Rencana pemantauan lingkungan (Environment Monitoring Plan)

RTE : Rare Threatened Endangered

SAP : System Application & Product in data Prosessing

SCCS : Supply Chain Certification System

SGM : Senior General Manager

SIA : Social Impact Assessment

SIUP : Surat Ijin Usaha Perkebunan/ Letter of Plantation Business Registration

SPUP : Surat Pendaftaran Usaha Perkebunan / Letter of Plantation Business Registration SM-HR BP : Senior Manager-Human Resource Bussiness Planning

SOP : Standart Operating Procedure

SOU : Strategic Operating Unit

SPSI : Serikat Pekerja Seluruh Indonesia (Labour Union)

SPUP : Surat Pendaftaran Usaha Perkebunan

TBM : Tanaman Belum Menghasilkan (Immature Plants)

TLB : Tractor Loader Backhoe

TMP : Tunggal Mitra Plantation

TPSA : Tempat Pembuangan Sampah Akhir / Landfill

WTP : Water Treatment Plant

WWTP : Waste water Treatment Plant

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PT. MUTUAGUNG LESTARI

RSPO ASSESSMENT REPORT

RSPO – 4006a/1.0/26072018 Page 5

Prepared by Mutuagung Lestari for Manggala POM – PT Tunggal Mitra Plantation subsidiary of Sime Darby Plantation Bhd 1.0 SCOPE of the CERTIFICATION ASSESSMENT

1.1 Assessment Standard Used  Indonesian Nasional Interpretasi Principle and Criteria RSPO 2013 for Indonesia Juli 2016, approved RSPO Governors 30 September 2016.

 RSPO Supply Chain Certification Standard For organizations seeking or holding certification Adopted by the RSPO Board of Governors on 21 November 2014 revised on 14 June 2017 (Module D / E for CPO Mill)

 RSPO Certification System for Principles and Criteria, 14 June 2017

1.2 Organisation Information

1.2.1 Organisation name listed in the certificate PT Tunggal Mitra Plantation subsidiary of SIME DARBY Plantation Bhd

1.2.2 Contact person Mohamad Pirabaharan

1.2.3 Organisation address and site address RSPO registered company:

No 2, Plantation Tower, PJU 1A/7Street Petaling Jaya, Malaysia 47301

Liaison Office:

The Plaza Office Tower, 36^th Floor Jl. MH Thamrin Kav. 28-30, Jakarta 10350

1.2.4 Telephone +62-21-29926000

1.2.5 Fax +62-21-29922686

1.2.6 E-mail mohamad.pirabaharan@simedarbyplantation.com

1.2.7 Web page address www.simedarby.com

1.2.8 Management Representative who completed the application for

certification Mohamad Pirabaharan

1.2.9 Registered as RSPO member 1-0008-04-000-00 – 7 September 2004

1.3 Type of Assessment

1.3.1 Scope of Assessment and Number of Management Unit Manggala Mill and 3 Estate, It’s consists of Manggala 1 Estate, Manggala 2 Estate and Mangala 3 Estate.

1.3.2 Type of certificate Single

1.4 Locations of Mill and Plantation 1.4.1 Location of Mill

Name of Mill Location Coordinate

Latitude Longitude

Manggala Mill Village of Pujud, Sub District of Pujud, District of Rokan Hilir, Province of Riau,

Indonesia N 01º 31' 16” E 100º 43' 40”

1.4.2 Location of Certification Scope of Supply Base

Name of Supply Base Location Coordinate

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RSPO – 4006a/1.0/26072018 Page 6

Latitude Longitude

Manggala 1 Estate Village of Pujud, Sub District of Pujud, District of Rokan Hilir, Province of Riau,

Indonesia N 01º 32' 07” E 100º 43' 48”

Indonesia N 01º 31' 54” E 100º 38' 38”

Indonesia N 01º 28' 23” E 100º 45' 32”

1.5 Description of Area Statement 1.5.1 Tenure

 State 13836.00 Ha

 Community - Ha

1.5.2 Area Statement

 Total area 13836.00 Ha

 Mature area 7852.42 Ha

 Immature area 2942.40 Ha

 Mill 15.26 Ha

 Emplashment & Infrastructure 491.37 Ha

 Others area 11.72 Ha

 Nursery 29.23 Ha

 Occupation 2472.40 Ha

 HCV 21.20 Ha

1.6 Planting Year and Cycles 1.6.1 Age profile of planting year

Planting Year Hectarage (Ha)

Manggala-1 Manggala-2 Manggala-3 Total

1990 216.41 - 32.71 249.12

1991 38.69 - 530.85 569.54

1992 1408.70 246.27 208.13 1863.10

1993 52.27 - 49.57 101.84

1994 - 193.00 101.00 294.00

1996 - 61.10 - 61.10

1997 - 220.30 119.58 339.88

1998 - 392.79 46.96 439.75

1999 - 440.39 - 440.39

2000 - 372.20 96.93 469.13

2004 - 50.64 - 50.64

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2006 - 48.48 - 48.48

2013 223.45 - 671.94 895.39

2014 395.42 243.00 331.82 970.24

2015 428.85 274.99 355.98 1059.82

Sub Total Mature 2763.79 2543.16 2545.47 7852.42

2015 368.90 - 59.84 428.74

2016 28.55 397.31 383.79 809.65

2017 (period 16/17) 199.73 - 406.66 606.39

2017 (period 17/18) 177.22 384.40 - 561.62

2018 (period 17/18) 139.57 277.67 118.76 536.00

Sub Total Immature 913.97 1059.38 969.05 2942.40

TOTAL 3677.76 3602.54 3514.52 10794.82

1.6.2 New Planting area after January 2010 - Ha

1.6.3 Planting Cycle 2^ndCycle

1.7 Description of Mill and Supply Base 1.7.1 Description of Mill

Name of Mill Capacity

(tonnes/ hour) FFB Processed (tonnes/year)

CPO Palm Kernel

Out put

(tonnes) Extraction

(%) Out put

(tonnes) Extraction

(%)

Manggala Factory 60 185330.32 40438.02 21.82 8710.53 4.70

*Production data source from September 2017 to August 2018 1.7.2 Description of Certification Scope of Supply Base

Name of Estate Total Area

(Ha) Planted Area

(Ha) FFB

(tonnes/year) Yield (tonnes/ha/year)

Supplied to Mill (tonnes/year) FFB %

Manggala-1 4,919.00 3677.76 66385.31 18.05 66385.31 100

Manggala-2 4,922.00 3602.54 57913.48 16.08 57913.48 100

Manggala-3 3,995.00 3514.52 61294.87 17.44 61294.87 100

TOTAL 13836.00 10794.82 185593.66 17.19 185593.66 100

*Production data source from September 2017 to August 2018 1.7.3 FFB description from other source

Name of sources/Organisation

(RSPO certified / non-certified) Type of Organisation number of

smallholders Production Area (Ha)

Supplied to Mill (tonnes/year) FFB

- - - - -

TOTAL

*PT Tunggal Mitra Plantatation doesn’t receive FFB from other source

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1.7.4 Product categories FFB, CPO, PK

1.8 Tonnage of Product

1.8.1 Past Annual Claim Certified Product Last Year Projected Certified

Volume (MT) Last Year Actual Certified Volume (September 2017 to August 2018)

(MT)

FFB Processed 186716 185330.32

CPO Production 41565 40438.02

Palm Kernel (PK) Production 8735 8710.53

1.8.2 Product selling

Type of selling product Actual selling product for for last year September 2017 to August 2018 (MT)

CSPO sold as RSPO certified product 0

CSPK sold as RSPO certified product 8550.77

CSPO sold under other scheme 0

CSPK sold under other scheme 0

CSPO sold as conventional 38565.00

CSPK sold as conventional 114.35

1.8.3 Estimate of Certified FFB Claim

Name of Estate(s) Total Area

(Ha) Planted Area

(Ha) FFB

(tonnes/year) Yield

(tonnes/ha/year)

Manggala-1 4919.00 3677.76 69704 18.95

Manggala-2 4922.00 3602.54 60809 16.88

Manggala-3 3995.00 3514.52 64359 18.31

TOTAL 13836.00 10794.82 194872 18.05

*Projected FFB production for 12 months of certificate (25 November 2018 to 24 November 2019) 1.8.4 Estimate of Certified Palm Product Claim

Name of Mill Capacity (tonnes/ hour)

Processed FFB (tonnes/year)

CPO Palm Kernel

Supply Chain Module Out put

(tonnes) Extraction

(%) Out put

(tonnes) Extraction (%)

Manggala

POM 60 194872 42872 22 9744 5 IP

*Projected CSPO and CSPK production for 12 months of certificate (25 November 2018 to 24 November 2019)

1.9 Other Certifications

ISO 9001:2008 -

ISO 14001: 2004 -

OHSAS 18001:2007 -

ISCC -

Others ISPO certificate with No. SGS-ID-ISPO-0014 on 04 April 2017 with validity until 03 April 2022 by PT SGS Indonesia

1.10 Time Bound Plan

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RSPO – 4006a/1.0/26072018 Page 9

Prepared by Mutuagung Lestari for Manggala POM – PT Tunggal Mitra Plantation subsidiary of Sime Darby Plantation Bhd 1.10.1 Time Bound Plan for Other Management Units

Management Unit

Supply Base Time Bound

Plan

HGU on Process

Location Status

Mill Time

Bound Plan

Ha Time Bound

Plan INDONESIA

Sekunyir.

PT. Indotruba Tengah

2010 Sekunyir 2010 Seruyan and West

Kotawaringin District – Central Kalimantan

Certified

Seruyan 2010 Certified

Manggala.

PT. Tunggal Mitra

Plantations

2010 Manggala 1 2010 Rokan Hilir District –

Riau

Certified

Manggala 2 2010 Certified

Manggala 3 2010 Certified

Bukit Ajong PT. Sime Indo Agro

2010 West 2010 1,652 2019 Sanggau District –

West Kalimantan Certified

East 2010 Certified

Sei Mawang 2018 -

East Plasma 2010 Certified

West Plasma 2010 Certified

Teluk Siak.

PT Aneka Inti Persada

2011 Teluk Siak 2011 421.31 2020 Pekanbaru,

Siak District – Riau

Certified

Pinang Sebatang 2011 Certified

Aneka Persada 2011 Certified

Sungai Pinang.

PT. Bina Sains Cemerlang

2012 Sungai Pinang 2012 308.25 2020 Musi Rawas District –

South Sumatera Certified

Bukit Pinang 2012 Certified

Pemantang.

PT. Teguh Sempurna

2011 Pemantang 2011 Seruyan and East

Certified

Kawan Batu 2011 Certified

Hatan Tiring 2011 Certified

Batang Garing 2011 Certified

Alur Dumai.

PT Lahan Tani Sakti

2011 Alur Dumai 2011 Rokan Hilir District –

Riau

Certified

Teluk Bakau.

PT. Bhumireksa Nusa Sejati

2011 Teluk Bakau 2011 Indra Giri Hilir District –

Riau

Certified

Nusa Perkasa 2011 Certified

Nusa Lestari 2011 Certified

Mandah PT. Bhumireksa Nusa Sejati

2014 Mandah 2011 Indra Giri Hilir District –

Riau

Certified

Rotan Semelur 2011 Certified

Angsana Mini*) PT Sajang Heulang

2011 KKPA-1 PT.SHE 2013 Tanah Bumbu District –

South Kalimantan Certified

Pantai Bonati 2011 Certified

Angsana.

PT

2011 Angsana 2011 Tanah Bumbu District –

Gunung Sari 2011 Certified

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Prepared by Mutuagung Lestari for Manggala POM – PT Tunggal Mitra Plantation subsidiary of Sime Darby Plantation Bhd Ladangrumpun

Suburabadi KKPA-4 PT.SHE 2013 Certified

Mustika.

PT Sajang Heulang

2013 Mustika Tanah Bumbu District –

KKPA-2 PT.SHE 2013 Certified

SAP 1 2020 ST-2

Gunung Aru.

PT Bersama Sejahtea Sakti

2011 Gunung Aru 2011 765 2020 Kotabaru District –

South Kalimantan

Certified

Gunung Kemasan 2011 Certified

Laut Timur 2011 Certified

Pantai Timur 2011 Certified

KKPA BSS 2020 -

Bebunga.

PT. Langgeng Muaramakmur

2011 Sungai Cengal 2011 1,162 2020 Kotabaru District –

Bebunga 2011 Certified

KKPA Sungai Cengal 2014 Certified

Sukamandang PT Kridatama Lancar

2011 Sukamandang 2011 Seruyan and East

Certified

Sapiri 2011 Certified

Barasdanum 2011 Certified

Kuala Kuayan 2011 Certified

Pondok Labu.

PT Paripurna Swakarsa

2012 Binturung 2012 1,120 2020 Kotabaru District –

South Kalimantan

Certified

Pondok Labu 2012 Certified

Rampa 2012 Certified

Sesulung 2012 Certified

Selabak *) PT Swadaya Andhika

2012 Selabak 2012 63 2020 Kotabaru District –

South Kalimantan

Certified

Randi 2012 Certified

Sangkoh 2012 Certified

Lanting 2012 Certified

Rantau.

PT Laguna Mandiri

2012 Rantau 2012 Kotabaru District –

South Kalimantan

Certified

Matalok 2012 Certified

Betung.

PT Laguna Mandiri

2014 Betung 2012 Kotabaru District –

South Kalimantan

Certified

Sekayu 2012 Certified

Ungkaya.

PT Tamaco Graha Krida

2012 Ungkaya 2012 Morowali District –

Sulawesi Tengah Certified

Plasma TGK 2015 Certified

Ladang Panjang.

PT Bahari Gembira Ria

2012 Ladang Panjang 2012 1,639 2020 Muaro Jambi District - Jambi

Certified

Plasma BGR 2020 -

Rantau Panjang.

PT Guthrie

2012 Rantau Panjang 2012 4,133 2020 Musi Banyuasin District – South Sumatera

Certified

Bumi Ayu 2012 Certified

Karang Ringin 2012 Certified

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Prepared by Mutuagung Lestari for Manggala POM – PT Tunggal Mitra Plantation subsidiary of Sime Darby Plantation Bhd Pecconina

Indonesia Napal 2012 Certified

Mangun Jaya 2012 Certified

Sungai Jernih Estate and

GPI KKPA 2017 -

Blang Simpo.

PT Perkasa Subur Sakti

2013 Tamiang (PT PPP) 2013 Aceh Tamiang and East

Aceh District –

Nanggroe Aceh

Darussalam

Certified

Batang Ara (PT PSK) 2013 1,286 2020 Certified

Blang Simpo-01 2013 Certified

Blang Simpo-02 2013 Certified

MAS.

PT Mitra Austral Sejahtera

2020 MAS 1 2018 Sanggau District

– West Kalimantan

-

MAS 1 2018 -

Plasma MAS 2020 -

Lembiru.

PT Sandika Nata Palma

2014 Lembiru 2014 Ketapang District –

West Kalimantan Certified

Awatan 2014 Certified

Karya Palma 2018 -

KKPA SNP 2020 -

Pelanjau (PT BAL) 2018 -

Sungai Putih (PT BAL) 2018 -

Baturus (PT BAL) 2018 -

KKPA BAL 2020 -

MALAYSIA Sg Dingin

SOU 1 2010 Bukit Hijau 2010 Kerangan, Kedah Certified

Padang Buluh 2010 Certified

Bukit Selangor 2010 Certified

Sg Dingin 2010 Certified

Jentayu 2010 Certified

Anak Kuli 2010 Certified

Somme 2010 Certified

Chersonese

SOU 2 2011 Chersonese 2011 Kuala Kurau, Perak Certified

Holyrood 2011 Certified

Kalumpong 2011 Certified

Tali Ayer 2011 Certified

Elphil

SOU 3 2011 Kinta Kellas 2011 Sg Siput, Perak Certified

Elphil 2011 Certified

Kamuning 2011 Certified

Flemington

SOU 4 2011 Flemington 2011 Teluk Intan, Perak Certified

Bagan Datoh 2011 Certified

Sabak Bernam 2011 Certified

Sg Samak 2011 Certified

Seri Intan

SOU 5 2011 Seri Intan (Main Division) 2011 Teluk Intan, Perak Certified

Sabrang 2011 Certified

Sg Wangi 2011 Certified

Sogomana (Main Division) 2011 Certified

Selaba 2011 Seri Intan (Selaba Division) 2011 Teluk Intan, Perak Certified

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SOU 5 Sogomana (Cashwood &

Sg Beruas Division) 2011 Certified

Bikam 2011 Certified

Clumy 2011 Certified

Tennamaram

SOU 6 2011 Tennamaram 2011 Bestari Jaya, Selangor Certified

Sungei Buloh 2011 Certified

Bkt Talang 2011 Certified

Bkt Kerayong

SOU 7 2011 Bkt Kerayong 2011 Kapar, Selangor Certified

Bkt Cherakah 2011 Certified

Bkt Rajah 2011 Certified

Bkt Lagong 2011 Certified

Elmina 2011 Certified

East

SOU 8 2010 East 2010 Carey Island, Selangor Certified

Dusun Durian 2010 Certified

Sepang 2010 Certified

West - SOU 9 2010 West 2010 Carey Island, Selangor Certified

Bukit Putri -

SOU 10 2011 Bukit Putri 2011 Raub, Pahang Certified

Kerdau

SOU 11 2011 Kerdau 2011 Temerloh, Pahang Certified

Jentar 2011 Certified

Mentakab 2011 Certified

Sg Mai 2011 Certified

Chenor 2011 Certified

Jabor - SOU 12 2011 Jabor 2011 Kuantan, Pahang Certified

Labu

SOU 13 2011 Labu 2011 Nilai, Negeri Sembilan Certified

New Labu 2011 Certified

Bradwall 2011 Certified

Tanah Merah

SOU 14 2010 Tanah Merah 2010 Port Dickson, Negeri

Sembilan Certified

Sua Betong 2010 Certified

Bukit Pelandok 2010 Certified

Sua Betong

SOU 15 2014 Salak 2014 Port Dickson, Negeri

Sembilan Certified

Sengkang 2014 Certified

Siliau 2014 Certified

PD Lukut 2014 Certified

Sungai Baru 2014 Certified

Tampin Linggi 2014 Certified

Kok Foh

SOU 16 2011 Bukit Pilah 2011 Bahau, Negeri

Sembilan Certified

Kok Foh 2011 Certified

Muar River 2011 Certified

St. Helier 2011 Certified

Pertang 2011 Certified

Sg Gemas 2011 Certified

Sg Sebaling 2011 Certified

Sg Senarut 2011 Certified

Kempas 2010 Kempas 2010 Jasin, Melaka Certified

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SOU 17 Kemuning 2010 Certified

Tangkah 2010 Certified

Diamond Jubilee SOU 18

2011 Bukit Asahan 2011 Jasin, Melaka Certified

Diamond Jubilee 2011 Certified

Serkam 2011 Certified

Pagoh

SOU 19 2014 Pagoh 2014 Muar, Johor Certified

Lanadron 2014 Certified

Pengkalan Bukit 2014 Certified

Welch 2014 Certified

Chaah

SOU 20 2010 North Labis 2010 Chaah, Johor Certified

Cha’ah 2010 Certified

Sg Simpang Kiri 2010 Certified

Gunung Mas

SOU 21 2010 Gunung Mas 2010 Kluang, Johor Certified

Kempas Klebang 2010 Certified

Bukit Paloh 2010 Certified

Yong Peng 2010 Certified

Bukit Benut

SOU 22 2011 Bukit Benut 2011 Kluang, Johor Certified

CEP Niyor 2011 Certified

Lambak / Elaeis 2011 Certified

Ulu Remis

SOU 23 2011 Pekan 2011 Layang-layang, Johor Certified

Sembrong 2011 Certified

Tun Dr. Ismail 2011 Certified

Ulu Remis 2011 Certified

Bukit Badak 2011 Certified

Cenas 2011 Certified

Hadapan

SOU 24 2011 CEP Rengam 2011 Layang-layang, Johor Certified

Kulai 2011 Certified

Layang 2011 Certified

Seri Pulai 2011 Certified

Sandakan Bay

SOU 26 2008 Tun Tan Siew Sin 2008 Sandakan, Sabah Certified

Tunku 2008 Certified

Tigowis 2008 Certified

Sentosa 2008 Certified

Saguliud 2008 Certified

Melalap

SOU 27 2011 Melalap 2011 Tenom, Sabah Certified

Sapong 2011 Certified

Binuang

SOU 28 2009 Tingkayu 2009 Kunak, Sabah Certified

Sungang 2009 Certified

Jelata Bumi 2009 Certified

Binuang 2009 Certified

Giram

SOU 29 2009 Mostyn 2009 Kunak, Sabah Certified

Giram 2009 Certified

Merotai

SOU 30 2009 Imam 2009 Tawau, Sabah Certified

Merotai 2009 Certified

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Table 2009 Certified

Tiger 2009 Certified

Lavang

SOU 31 2011 Belian 2011 Bintulu, Serawak Certified

Kelida 2011 Certified

Lavang 2011 Certified

Lavang (SE) 2011 Certified

Rasan 2011 Certified

Rajawali

SOU 32 2011 Rajawali 2011 Bintulu, Serawak Certified

Samudera 2011 Certified

Semarak 2011 Certified

Bayu 2011 Certified

Derawan

SOU 33 2011 Takau 2011 Bintulu, Serawak Certified

Damai 2011 Certified

Derawan 2011 Certified

Sahua 2011 Certified

Pekaka

SOU 34 2011 Chartquest 2011 Bintulu, Serawak Certified

Dulang 2011 Certified

Peroh 2011 Certified

Pekaka 2011 Certified

Ruai 2011 Certified

LIBERIA Grand Cape

Mount 2017 Matambo

(2,500 Ha) 2017 Grand Cape Mount,

Liberia

NPP 2011 May Grand Cape Mount

(2,372 Ha) 2017 NPP

May 2011 Zodua

(264) 2017 NPP

2011 May Bomi

(3,128 Ha) 2017 Bomi, Liberia NPP

May 2011 Lofa

(2,254 Ha) 2017 NPP

May 2011 P & G

(New Britain Palm Oil)

Poliamba 2012 Kara 2012 Kevieng, New Ireland

Province, P&G Certified

West Coast 2012 Certified

Nalik 2012 Certified

Noatsi 2012 Certified

Madak 2012 Certified

North 2012 Certified

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Prepared by Mutuagung Lestari for Manggala POM – PT Tunggal Mitra Plantation subsidiary of Sime Darby Plantation Bhd (Smallholders)

South

(Smallholders) 2012 Certified

West

Tetere 2011 Tetere 2011 Gudaicanal, Slomon

Island Certified

Ngalimbiu 2011 Certified

Mbalisuna 2011 Certified

West Zone

Central Zone

MBA East

MBA West

Sangara, Sambiripa &

Mamba 2013 Sangara 2013 Higaturu, Popondetta,

Oro, P&G Certified

Sumberipa 2013 Certified

Ambogo 2013 Certified

Embi 2013 Certified

Mamba 2013 Certified

Sorovi

(smallholders) 2013 Certified

Igora

Saiho

Aeka

Ilimo

Gusap 2010 Dumpu 2010 Madang, P&G Certified

Surinam 2010 Certified

Jephcott 2010 Certified

Gusap 2010 Certified

Paddox 2010 Certified

Ngaru 2010 Certified

Madang VOP

Morobe VOP

Hagita 2013 Giligili 2013 Milne Bay, P&G Certified

Hagita 2013 Certified

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Waigani 2013 Certified

Sagarai 2013 Certified

Padipadi 2013 Certified

Mariawatte 2013 Certified

East Gurney 2013 Certified

West Gurney 2013 Certified

East Sagarai 2013 Certified

West Sagarai 2013 Certified

Mosa

Kumbango

Kapiura

Namumdo

Waraston

2008 Bebere 2008 West New Britain Certified

Kumbango 2008 Certified

Togulo 2008 Certified

Dami 2008 Certified

Waisisi 2008 Certified

Kautu 2008 Certified

Karausu 2008 Certified

Moroa 2008 Certified

Bilomi 2008 Certified

Loata 2008 Certified

Haella 2008 Certified

Garu 2008 Certified

Daliavu 2008 Certified

Sapuri 2008 Certified

Malilimi 2008 Certified

Rigula 2008 Certified

Nomundo 2008 Certified

Navarai / Karato ME 2008 Certified

Volupai . Lotomgam /

Natupi / Goruru 2008 Certified

Lolokoru 2008 Certified

Silovoti 2008 Certified

LSS Hoskin (1,877

Smallholders) 2008 Certified

VOP East (1,815

VOP Central (1,958

VOP West (1,277 Smallholders)Kaulong / Akamie / Pusiki / Repamira

/ Sakapei / KDC ME (21 large smallholders)

2008 Certified

LSS Kapiura (847

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Prepared by Mutuagung Lestari for Manggala POM – PT Tunggal Mitra Plantation subsidiary of Sime Darby Plantation Bhd VOP Kapiura (551

Sime Darby has achieved 34 managament units in Malaysia, 24 management units in Indonesia, 10 management units in Liberia that RSPO certified. Total management unit in Sime Darby Plantation Bhd are 34 in Malaysia, 25 in Indonesia and 10 in Liberia.

In the year of 2017 there are two Mill that are no longer operating, and for the supplying base (Estate) is diverted to a mill that is still operating and has been certified RSPO.

A new mill will be set up in Liberia and planned for commissioning in February 2016. Preparation to undergo the RSPO Certification process is in progress and Sime Darby Plantation Bhd targets to undergo RSPO Certification by end 2017. RSPO NPP process has been completed in 2011. Internal assessment against the draft Liberia NI has been completed and closing of gaps is in progress.

There was change of the Time Bound Plan under Sime Darby on 15 April 2016 cause the Sime Darby postpone the others certification process. Change of the Time Bound Plan explanation: PT Mitra Austral Sejahtera. There are social issue still unresolved from the Serikat Petani Kelapa Sawit (SPKS) Sanggau, however the improvement are in progress.Sime Darby has informed the Time Bound Plan progress, MUTU has consider that Sime Darby still comply with the RSPO requirement for partial certification.

1.10.2 Progress of Associated Smallholders and Outgrowers for Certifiable Standard

PT Tunggal Mitra Plantation does not have a cooperation scheme with smallholders and Outgrower

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2.0 ASSESSMENT PROCESS

2.1 Assessment Team

ASA-1.3 1. Muhammad Rinaldi (Lead Auditor). Indonesian citizen, Diploma of Oil Palm Plantation. He has experience 4 years working as Assistant Agronomy since 2007. He has attended training RSPO Lead Auditor, SCCS training, training of Auditor ISPO, training of Lead Auditor ISO 9001-2008, training of ISO 14000, training of HCV identification, training of OHS system management, training of potential and conflict resolution and SA 8000.

Experienced in auditing in relevant scheme (ISPO) since 2014 with the aspects of land legality, environmental, social, occupational health and safety, Best Management Practices, Conservation and worker welfare. During the assessment he assigned to verify legal, land dispute and SCCS.

2. Rizliani Aprianita Hsb (Auditor). Indonesian Citizen. Bachelor and Magister of Agribusiness, Faculty of Agriculture. She had followed training such as RSPO Lead Auditor Training, SCCS training, lead Auditor ISO 9001;2008, ISO 14001;2004, ISPO Auditor training and followed several IHT related to environment, BMP, SA 8000, etc. She has been involved in several audit activities related to sustainable palm oil certification since 2015 covering social aspect, health and safety aspect, worker welfare and waste management aspect. During the assessment she assigned to verified environmental management, GHG, HCV and social aspect.

3. Dwi Haryati (Auditor). Indonesian citizens. Bachelor of Agriculture Department of Agriculture – Program study:

Agronomy. She has experienced on Palm Oil Plantation as Sustainability staff. Training have been followed include:

Training Auditor ISPO, Quality Management ISO 9001-2008, ISO 14001 Environmental Management, ISO 17021

& 17065, HCV, General Health Safety Expert, Health Safety Management System, Workshop GHG by the ISPO Commission, IHT Palm Oil Mill Processing, Awareness RSPO, IHT Best Practice in Peat Management, Mapping Potential and Conflict Resolution in Production Forest and SA 8000. RSPO audit experience since March 2015 and ISPO since May 2014. During this assessment she was observed and audit on Transparency, Occupational Health and Safety, and Worker Welfare.

4. Haikal Ramadhan Kharismansyah (Auditor Trainee). Indonesian citizen, Bachelor of Agriculture department of plant and pest disease (Agro technology). He has 3 years experiences as an Agronomy Staff in private oil palm plantation in Indonesia. Training which had attended including Basic Management Development Program Agronomy, Integrated Urban Pest Management, Integrated Pest Management, ISO 9001 : 2015, Auditor ISPO, RSPO awareness, ISO 22000 awareness, SA 8000, and ISO 14000. Did some audit RSPO scheme with aspects Best management practices, OHS, and worker welfare. During this audit, he support to verified best management practice and long-term plan.

2.2 Assessment Methodology, Assessment Process and Locations of Assessment 2.2.1 Figure of person days to implement assessment

ASA-1.3 Number of auditors : 3 auditors and 1 auditors in trainee Number of days for ASA-1.3 at site : 4 days

Number of working days for ASA-1.3 at site : 16 Working days 2.2.2 Assessment Process

ASA-1.3 The assessment was conducted by measuring the sufficiency of implementation with the consistency done by the PT Tunggal Mitra Plantation to the requirements of Indonesian National Interpretation of RSPO Principles and Criteria 2013 by INA-NITF, July 2016 (Endorsed by the RSPO Board of Governors meeting on 30^thSeptember 2016 for Sustainable Palm Oil Production and RSPO Supply Chain Certification Standard For organizations seeking or holding certification Adopted by the RSPO Board of Governors on 21 November 2014 revised on 14 June 2017 (Module D for CPO Mill)

The assessment was conducted in three methods: (1) document review, aiming to observe the sufficiency of types or

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substances from required documents; (2) interview, aiming to obtain more detailed information and cross check the information; and (3) field observation, aiming to observe directly the sufficiency of implementation on site.

Some opportunities for improvement of the results ASA-1.3 delivered by the MUTU auditor to the management unit and the results are the subject will be verified at the next assessment phase ASA-1.4.

Improvement of findings from main assessment findings were observed by auditors at this ASA-1.3 assessment. All information obtained was recorded in Check List of PT Mutuagung Lestari (MUTU) and part of ASA-1.3

The assessment program please find Appendix 2

2.2.3 Locations of Assessment ASA-1.3 Manggala 1 Estate

 Block E34 division 4. Circle and Path Spraying. (6 pesticide applicator). Observation and interview related handling on pesticide, OHS, PPE, and Block Spraying System.

 Block E11 division 3. Manuring. (6 worker). Observation and interview related Block Manuring System, OHS, PPE, and handling on agrochemical.

 Block F008 EFB Application. Observation related EFB application and dosage use.

 Block E10 dan E11. Replanting. Observation related implementation of zero burning policy in replanting area

 Block G007. Subsidence pole. Observation related peat management

 Daycare (Division 1). Observation and interviews related to employee welfare facilities, wages, employment and domestic waste management.

 Block Spraying System (BSS) Warehouse. Observation the conditions PPE of warehouse and PPE handling.

 Clinic. Observation and interview with paramedic about first aid mechanism, medical waste management and work accident record monitoring.

 Land application block E011. Observation for waste water management and nutrient cycle strategy

 Landfill. Division II-III block 18. Observations related to handling domestic waste and garbage conditions in landfills.

 Workshop. Observation and interviews related to the competence of workers, implementation OHS (including medical check-up), employment, waste management and complaint mechanism.

 Fertilizer storage. Observation and interviews related to hazardous management, waste management and implementation OHS.

 Chemical storage. Observation and interviews related to chemical and pesticide storage area, hazardous waste management, employment, and implementation OHS.

 Housing division 1. Observation of the availability of infrastructure such as employee housing facilities, water facilities, educational facilities, religious facilities, health facilities and sports facilities

 Hazardous Waste Storage. Observation and interviews related to hazardous waste management, OHS implementation, employment and complaint mechanism.

 Fire Fighter Warehouse. To observe completeness and readiness of fire fighter equipment.

 Fuel and Lubricant Storage. Observation related to implementation of OHS Manggala 2 Estate

 Block J005. Observation of legal boundary conditions No TMP 64.

 Block J004. Observation of legal boundary conditions No TMP 65.

 Block E07. Observation related to occupation area

 Block J003. Observation related to boundary with occupation area

 Block A01 division 4. Observation related to riparian zone of Bangko River

 Landfill block C005. Observations related to handling domestic waste and garbage conditions in landfills.

 EFB application block E001. Observation related to EFB application Manggala 3 Estate

 Housing Emplacement Pondok 2 (3 workers). Observations related to hygiene facilities include sanitation, clean air, domestic waste management and complaints if any.

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 Daycare. (3 workers). Observation related to given facility, emergency response facilities and interviews with employees in relation to work hours, wages, and access to daily needs, policies, protection of reproductive rights for women workers.

 Block Spraying System (BSS) & Block Manuring System (BMS). (1 worker). Observation and interview regarding of hazardous waste (pesticide) and PPE Spray storage.

 Warehouse complex (Agrochemical and Fertilizer Storage). (2 workers). Observation and interview related to wages, training, PPE, work accident, and complaint mechamism.

 Workshop (3 workers). Observations and interviews with workers related to the management and implementation of health safety, first aid box and social worker and hazardous waste management.

 Hazardous Waste Storage (1 worker). Observation and interviews related to hazardous waste management, OHS implementation, employment and complaint mechanism.\

 Landfill (2 workers). Observation about domestic waste management.

 Block K05 Division III. Manuring. Observation and interview related Block Manuring System, OHS, PPE, and handling on agrochemichal.

 Block L08 and Block K03. Subsidence Pole. Observation and interview related peat land management

 Block L17. Inlet on peat management. Observation and interview related peat land management

 Block H12 and Block I0055. Water Level. Observation and interview related peat land management Manggala Factory

 Weighbridge Station. Observation of supply chain procedure. (1 person)

 Security. Observation related to the acceptance of FFB. (2 person)

 Workshop. Observations and interviews with workers related to the management and implementation of health safety, and social worker and hazardous waste management. (2 person)

 Hazardous waste temporary warehouse. Field observations related to the fulfillment of the attributes health and safety, recording, and the implementation of compliance requirements hazardous waste temporary warehouse. (2 person)

 Chemical storage. Observation and interview on environmental aspect, OHS implementation, management of chemical and understanding of working procedure.

 Hydrant simulation (4 worker). Observations related the use of fire prevention facilities that can be used at any time.

 Boiler (1 worker). Observation and interview with operator related personnel understanding over the applicable SOP, infrastructure in mill, medical examination, trainings from company, OHS license and worker welfare.

 Clarification (1 worker). Observation and interview with operator related PPE, the applicable SOP, the implementation of occupational health and safety, work accident, trainings from company and worker welfare.

 Press (2 worker). Observation and interview with operator related personnel understanding over the applicable SOP, infrastructure in mill, the implementation of occupational health and safety, PPE, complaints procedure, trainings from company and worker welfare.

 Sortation (3 worker). Observation and interview related criteria of FFB, PPE, OHS, and working hour.

 Sterilizer (1 worker). Observation and interview related personal understanding on the SOP.

 Engine room (1 worker). Observation and interview with operator related personnel understanding over the applicable SOP, infrastructure in mill, the implementation of occupational health and safety, PPE, complaints procedure, trainings from company and worker welfare.

 Kernel station (1 Worker). Observation and interview with operator related PPE, the applicable SOP, the implementation of occupational health and safety, work accident, trainings from company and worker welfare

 Water intake. Observation for POM water intake condition

 Waste Water Treatment Plant. Field observations and interviews with WWTP operators regarding waste water management.

 WTP. Observations and interviews related to water management, recording of water use, health checks, PPE and waste management.

 Empty Bunch Area. Observation related to solid waste.

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Prepared by Mutuagung Lestari for Manggala POM – PT Tunggal Mitra Plantation subsidiary of Sime Darby Plantation Bhd 2.3 Stakeholder Consultation and Stakeholders Contacted

2.3.1 Summary of stakeholder consultation process.

ASA-1.3 The public consultation with stakeholders to PT Tunggal Mitra Plantation done through:

 Conduct a public announcement on the CB website (www.mutucertification.com) on 03^rd September 2018.

 Conduct consultation via email questionnaire with stakeholders (Labour Agency, BPN, Environment and Plantation Agency, Rokan Hilir District, Province of Riau) on 13^thSeptember 2018

 Conduct consultations via email questionnaire to NGOs (International Animal Rescue Indonesia, WALHI, Sawit Watch, and Aliansi Masyarakat Adat Nusantara) on 12^th September 2018.

 Conducting visits and direct interviews with stakeholders (Local Communities) on 18^th September 2018.

 Conducting Interviews with the Cooperative Employees, local contractor, Gender Committee, Labor Union on 18^th September 2018.

2.3.2 Stakeholder contacted Please find appendix 1 2.4 Determining Next Assessment

The next visit ASA-1.4 will be determined one year after this ASA-1.3 (September 2019).

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Prepared by Mutuagung Lestari for Manggala POM – PT Tunggal Mitra Plantation subsidiary of Sime Darby Plantation Bhd 3.0 ASSESSMENT FINDINGS

3.1 Summary of Assessment Report of the RSPO Certification

MUTUAGUNG LESTARI has conducted an assessment of Manggala POM – PT Tunggal Mitra Plantation, Sime Darby Bhd operation consisting of one (1) mill and three (3) oil palm estates.

During the assessment, there were one (1) nonconformity were assigned against Major Compliance Indicators and three (3) nonconformities against supply chain requirement for CPO mill and ten (10) opportunities for improvement were identified.

Further explanation of the non-conformities raised and corrective actions taken by the company are provided in section 3.5. The company has already prepared and implemented the corrective actions that had been reviewed and accepted by Auditors in form of documentation evidences. Those corrective actions taken that consist of one (1) Major non-conformity and three (3) nonconformities against supply chain requirement for CPO mill had been closed out and shall be verified during next assessment.

MUTUAGUNG LESTARI found that Manggala POM – PT Tunggal Mitra Plantation, Sime Darby Bhd complied with the requirements of Indonesian National Interpretation of RSPO Principles and Criteria 2013 by INA-NITF, July 2016 (Endorsed by the RSPO Board of Governors meeting on 30^thSeptember 2016 for Sustainable Palm Oil Production and RSPO Supply Chain Certification Standard For organizations seeking or holding certification Adopted by the RSPO Board of Governors on 21 November 2014 revised on 14 June 2017 (Module D for CPO Mill)

Therefore MUTUAGUNG LESTARI Recommends RSPO Certification of compliance is continued Ref Std. VERIFICATION RESULT of MUTU-Certification

PRINCIPLE #1 COMMITMENT TO TRANSPARENCY

1.1 Growers and millers provide adequate information to relevant stakeholders on environmental, social and legal issues relevant to RSPO Criteria, in appropriate languages and forms to allow for effective participation in decision making.

1.1.1, 1.1.2

Company has SOP Response of stakeholders contained in SOP Request Information No. revision 03 dated September 18, 2016. This procedure describes the communication of stakeholders. In the document described the procedures for communicating with staff and outsiders. The procedure request information can be detailed, among others, all the incoming information request letter will go into the operational unit and will be studied and made the answer by the Manager of the operational unit and all letters of answers to the information requested to be sent to parties must be signed by the Manager Operational Unit.

The Company has listed of stakeholders (99) including contractors / contractors, district and village government, schools, hospitals / clinics / puskesmas, bank, BPJS office and police.

Based on interview with community of Pemantang Genting and Sukamulya Village, if they need information they will submit a letter to the company. According to them, the company always responds each letter submitted.

The company was documented all of incoming and outgoing letter from another party. Based on document verification of incoming letter and the respond by the company, for example for MGE-1 there is a letter regarding the application for the collection and utilization of oil palm seeds from replanting by Labour Union. The company responded with no approval and was conveyed directly that the rules in the PT TMP were not allowed to be used.

The company was respond these requested and the documentation of response was showed.

Based on the results of document verification, it is known that there are officers (kasie) appointed to renew the list of stakeholders every month according to incoming / outgoing mail.

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The Company has presented records related to SOP socialization and stakeholder information held in June, 29 2018 with participants as many as 21 people consisting of Village Pemantang Genting, Staff and Employees of Manggala Estate as well as communities surrounding the estate.

Status : Comply

1.2 Management documents are publicly available, except where this is prevented by commercial confidentiality or where disclosure of information would result in negative environmental or social outcomes.

1.2.1

The company has listed a list of documents available to the public. List of documents that can be provided in accordance with no. Letter 002 / SOU-16 / XI / 2016 dated September 19, 2016. The available documents that can be opened by the management unit include the wide LC, TBM and infrastructure, payment labor social assurance, payment of medical treatment, employee document, students document, employee public facility data, pest and disease data, light vehicle and heavy equipment data, supporting machine data, CSR data, bridge data, road length data, building work data, building data general, school building data, type of fertilizer used and type of agrochemical used.

The Company has a letter dated 28 April 2014 regarding publicly available documents provided by a legal section signed by the SOU 16 I Putu Endra and can only be issued with the approval of legal parts such as HGU, SIUP / IUP, Licensing, HCV, SIA, Waste / Applications, AMDAL, RKL / RPL, P2K3, Employee data, FFB production data, Production data of MKS-IKS, B3 waste data, Specification of factory machinery, vehicle specifications and sustainable management of plantation guidelines.

Based on interviews with the villages of Sukamulya and Pemantang Genting, they explained that they knew the types of documents they could access such as CSR data, light vehicle data and heavy equipment etc. This is related to the company's assistance program to surrounding villages.

Status : Comply

1.3 Growers and millers commit to ethical conduct in all business operations and transactions.

1.3.1

Company has a policy of standard business of conduct that explains fair business practices, prohibition of corruption, bribery, fraud in the use of funds and resources as well as the disclosure of information in accordance with prevailing regulations. The policy contained in the Company Policy no. 440/HRM-COC/07 on 24 May 2007. The policy is available in Bahasa. The policy is communicated to workers in accordance with the results of interviews with them. Based on interview with contractor of FFB transport, it is known that company has been disseminated the policy of standard business of conduct.

The Company has shown socialization related to Code of Ethics SOP on June 29, 2018. The socialization was attended by community leaders, employees, head of community, community unit and community. Based on the result of document verification, it is known that the socialization is available in Bahasa Indonesia.

Status : Comply

PRINCIPLE #2 COMPLIANCE WITH APPLICABLE LAWS AND REGULATIONS 2.1

There is compliance with all applicable local, national and ratified international laws and regulations.

2.1.1

Certificate holder consistently applies legislation relating to plantation and palm oil mill. The last update of laws and regulations list was conducted on August, 31 2018. The Certification Unit has shown compliance with laws and regulations, for example:

Environment Aspect 1. EIA Document :

 EIA documents of PT Tunggal Mitra Plantation approved by the Ministry of Agriculture in accordance with the Minister of Agriculture No. RC. 220/950 / B / V / 1994 dated May 28, 1994 regarding the Approval of EIA PT Tunggal Mitra Plantation. In this document the scope of the study covers an area of 18,000 hectares and a capacity of mill will be built by 60 ton FFB / hour.

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 PT Tunggal Mitra Plantation's RKL / RPL document was approved by the administration Department of Agriculture Agency No. 001 / RKL-RPL / BA / VI / 94 dated June 24, 1994.

 The Revised RKL / RPL document was approved by the Regency Head of the Rokan Hilir Regional Environmental Impact Management Agency (BAPEDALDA) in accordance with Letter No. 666.1 / AMDAL-BAPEDALDA / 2006/12 dated August 23, 2006.

2. Land Application Permit based on the Decree of the Head of the Environmental Agency of Rokan Hilir Regency No.

49 / DLH / 2017 regarding Permit for the Utilization of Palm Oil Mill Waste Water on the land of PT TMP dated December 4, 2017.

3. Hazardous waste storage Permit as outlined in the Decree of the Head of the Environmental Impact Management Agency of Rokan Hilir District No. 54 / BPDL / 2015 dated 27 November 2015 regarding hazardous Waste Management Permits for PT TMP which are valid until 5 years.

OHS  Has P2K3 structure and P2K3 report in accordance with Minister of Labor Regulation No. 4 year 1987. The company need to consider following up on operator permits and extending the appointment of General OSH Experts. OFI.

 Has boiler operators, welders and heavy equipment operators certified in accordance with the regulations.

Best Management Practices

 Reducing the use of WHO 1A and 1B pesticides and not using paraquat

 Using registered pesticides that are permitted by the government in accordance with regulations.

Worker welfare

The Certification Unit has comply with minimum wage referring the decree of Riau Governor No. 373/V/2018 (refer to indicator 6.5.1). Fulfillment of minimum wages, payroll systems such as overtime provisions, and worker protection (BPJS Ketenagakerjaan and BPJS Kesehatan).

Legal Aspect:

The Company already has documents of land tenure and concession in the document:

 Certificate of Land Use (HGU) No. 2 of 1999 in accordance with the letter of Measure No. 16/1998 dated July 28, 1999.

The concession area covers 13 386 Ha, the Land Use Permits valid up to July 28, 2034.

 Plantation business permit in the form of Letter of Plantation Business Registration (SPUP) No. 202 / Menhutbun - VIII / 2000 dated March 10, 2000, 13 836 Ha area and plant with a capacity of 45 ton FFB / hour.

2.1.2; 2.1.3 and 2.1.4

To ensure compliance to regulations, company has procedure No. 021/TMP-PUUP/I/16, rev 01, January 1 2016. This document explaining who have responsibility to update the regulation and law, identification and inventory, evaluation and monitoring Information of regulation from national, provincial and district regulatory bodies, and renewal of any changes to prevailing laws and regulations and monitoring of expired regulations/licenses.

A list of regulatory identifications ranging from Laws, Government Regulations, Presidential Decrees, Ministerial Regulations, Ministerial Decrees, Regional Regulations, and the ratification of the ILO. Internal audits have been conducted continuously and are documented and reviewed in the management review activities conducted August 2018

Status : Comply

2.2 The right to use the land is demonstrated, and is not legitimately contested by local people who can demonstrate that they have legal, customary or user rights.

2.2.1

There is no change om document of land use legalities that have by The PT Tunggal Mitra Plantation, consist of :

 Certificate of Land Use (HGU) No. 2 of 1999 in accordance with the letter of Measure No. 16/1998 dated July 28, 1999.

The concession area covers 13 386 Ha, the Land Use Permits valid up to July 28, 2034.

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 Plantation business permit in the form of Letter of Plantation Business Registration (SPUP) No. 202 / Menhutbun - VIII / 2000 dated March 10, 2000, 13 836 Ha area and plant with a capacity of 45 ton FFB / hour.

2.2.2

The procedure about boundary pole maintenance of PT Tunggal Mitra Plantation does not change with previous assessment listed on Standard Operating Procedure Maintenance of Boundary Poles (Document: PDKK number, valid since July 4, 2010). These procedure as guidance for maintenance periodically the boundary stone. Based on field observation, entire boundary poles were located in it coordinate even some of them located inside the village.

Based on the last Monitoring of Poles Maintenance that conducted in September 2018, it is known that in Manggala 3 Estate there are 2 main poles and 40 auxiliary poles in the occupational area, Manggala 2 Estate has 3 main poles and 12 auxiliary poles, and Manggala 1 Estate has 1 main pole.

The company shows the Minutes of BPN Poles Evaluation dated September 19, 2018 which explains that the HGU Poles there are only 6 of 88 BPN poles because other poles are in the occupational area/community area.

The company is encouraged to ensure and consult with BPN related to the boundary poles coordinate in accordance with the Situation Revision Map No. 16/1992. OFI

2.2.3, 2.2.4, 2.2.5

There were no changes to the conflict resolution procedure listed in the Occupational Land Acquisition Procedure (343 / PSD-OKUP / 11) and there was a Memorandum recording from Head Plantation Upstream Indonesia on June 22, 2012.

Based on the Statement Area, it is known that the company did not extend the area and there were no land disputes. The company has shown the entire compensation process in the previous assessment, for example in 1997, an area of 301.60 hectares in the Tanah Putih sub-district.

Based on interviews with Suka Mulya and Pematang Genting Villages, it was known that there is no dispute area in the company. All areas that cannot be controlled by the company have been discussed with affected parties and there has been measurement of the enclave area on November 9, 2015.

2.2.6

The company had policy Sime Darby Responsible Agriculture Charter, 2016. These Policy related to Prohibition of Contractually Army using, The main point was explained in these policy, consist of point that the company will not using of Contractually Army in conflict resolution and will not tolerance of anarchism in conflict resolution process.

Based on field visit observation during the audit process, stakeholder consultation with village head, informal leader and community in Suka Mulya and Pematang Genting, there is no indication of Contractually Army using in PT Tunggal Mitra Plantation.

Status : Comply

2.3 Use of the land for oil palm does not diminish the legal rights, or customary rights, of other users, without their free, prior and informed consent.

2.3.1, 2.3.2, 2.3.3, 2.3.4

There is no change in the FPIC SOP listed in the Occupational Land Acquisition Procedure (No. 343 / PSD-OKUP / 10) which explains that the land acquisition process must go through the stages of negotiation between the company and the party claiming the land.

Based on a document review of the area of the statement and interviews with the villages of Sukamulya and Pematang

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Genting, it is known that the company did not extend the area and there were no land disputes, so there was no compensation for new land.

The company has shown the entire compensation process in the previous assessment, for example in 1997, an area of 301.60 hectares in the Tanah Putih sub-district. The compensation documentation is consist of Minutes of Compensation Handover, Statement of Compensation, Proof of receipt of compensation, Statement of land owner, Land Situation Map.

Status : Comply

PRINCIPLE #3 Commitment to long-term economic and financial viability

3.1 There is an implemented management plan that aims to achieve long term economic and financial viability.

3.1.1 & 3.1.2

Certificate holder shows the Long Term Business Plan for PT Tunggal Mitra Plantation for the period of 2016/2017 – 2020/2021 which was approved by the Head Plantation Operation which explained the budget for seed use, FFB production, OER, Production Costs, Estimated CPO Prices, Revenues, Replanting programs, and CPO production. For example in year 2019/2020 projected to produce a number of CPO amount 40,560 Ton.

There are planned operational costs for the Manggala Factory as follows:

- Forecast mill intake, (FFB), processing cost, Admin cost, Training cost, Environment cost, Health cost, Transport cost, etc.

- The cost of managing the environment has also been allocated for the manufacture, installation and maintenance of OHS and non-OHS announcement boards, the cost of laboratory analysis, and waste to outside parties.

- Projection of production in the next 5 years until 2019/2020

Certificate Holder also has a replanting plan whose information can be seen in both the Monthly Management Committee Meeting and the Long Range Replanting Program. Manggala-2 replanting plans are available for the 2013/2014 period to 2023/2034.

Replanting activities that have been realized at PT Tunggal Mitra Plantation in 2017/2018 (June to July) are : Estate Land Preparation Planting

Program Actual Program Actual MGE-1 376.01 316.79 376.01 316.79 MGE-2 277.67 277.67 277.67 277.67 MGE-3 279.15 229.09 279.15 229.09

Based on field visits to blocks E10 and E11 Manggala-1 are known to be replanting activities in accordance with the established procedures, for example there are legume cover crop planting and making terraces for certain slope areas.

In the peat area, trenches are made which function to carry out water management.

Status : Comply

PRINCIPLE #4 Use of appropriate best practices by growers and millers

4.1 Operating procedures are appropriately documented and consistently implemented and monitored.

4.1.1

Certificate holder has procedures of Estate operational start from Land Clearing until Harvesting in Agricultural Reference Manual of Oil Palm Planting No. 110/EST-ARM/13 dated September 1, 2013 signed by Head Plantation Upstream of Indonesia. The company also has a reception process procedure of FFB until to the dispatch of CPO and kernel, in a palm oil mill engineering guidelines Parts I and II, Minamas Plantation on April 30, 2007. SOP document has been distributed on September 16, 2013 to all unit head of estates and mills. Block Spraying System Procedure dated March 4, 2009 described how to apply pesticide in the field, how to mixed pesticide, how to handle spraying equipment, and PPE. Pictorial OHS procedure in mill (723/PSQM-PSS/12) and estate (722/PSQM-PSS/10) described safety working with the use of PPE, sign board, safety working, and handling emergency response.

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Other than that the certificate holder also has Procedure of product identification and traceability at POM number RSPO/66/SCCS/15-TMP dated April 26th 2015. The procedure has adjusted from the SCCS standard on November 2014.

The person in charge of the POM operational are the Factory Manager, Assistant of PSQM, Laboratory Foreman/Assistant and Assistant /Sr. Assistant /Manager of Bulking. The FFB transport procedure is contained in document No. Policy: 14x / PTK-TRP / 2004, No. Index XIV / 01. It separate from ARM

Based on field observation to Manggala-1 Estate block E34 division 4 on circle and path spraying known workers have understood working in accordance with established procedures. For example, before being taken to the field, pesticides have been mixed first at the BSS house, the responsibility to use PPE, the responsibility to wash and store PPE after work, and the application of pesticides in accordance with the specified target and the right dose.

Field visit to Manggala POM for example in sortation and grading station; boiler, and sterilizer station workers has able to explain their daily work and understanding of OHS.

4.1.2 & 4.1.3

Daily routine supervision is carried out by supervision levels ranging from foremen, division assistants, senior assistants, to estate managers. Monthly supervision of the quality of work is carried out by PSQM staff every month. Regular supervision by the internal auditor team (GCAD) is carried out at least every six months

In addition, there is also the Estate Performance Index for the 2017/2018 Period by Head Plantation Operation.

Assessment parameters such as harvest quality, OER, FFA, and plant maintenance quality. Based on information from the Estate Manager and the PSQM staff, it was known that the plantation was given 2 weeks to co